Q2 2026 Vitec Software Group AB (publ) Earnings Call Transcript
Key Points
- Vitec Software Group AB (STU:7VS) reported a 15% total sales growth, with 4% organic growth and 11% growth in subscription revenues.
- The company has a strong recurring revenue model, with 85% of its SEK3.7 billion pro forma sales being recurring.
- Vitec Software Group AB (STU:7VS) has a diversified customer base, with the largest customer accounting for only 8% of total sales, reducing dependency risk.
- The company is actively leveraging AI to enhance its product offerings and internal efficiencies, which is expected to drive future growth.
- Vitec Software Group AB (STU:7VS) maintains a disciplined approach to M&A, focusing on acquiring established, profitable vertical software companies with proprietary software and recurring revenue models.
- No acquisitions were concluded during Q2, indicating potential challenges in the M&A environment.
- The company is experiencing a lag in translating increased market activity into actual revenue growth.
- There is a noted decrease in the tailwind from price increases, which may impact future organic growth rates.
- The tax rate has increased to 26%, higher than previous quarters, due to profits being earned in countries with higher tax rates.
- Despite increased interest in AI, customer adoption remains cautious, with many preferring incremental changes rather than wholesale adoption of new technologies.
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Thank you, and a warm welcome to everyone attending this conference call today. I'm Patrick Fransson, Head of Investor Relations Group, and with me is our CEO, Olle Backman. First, we will give a short overview of Vita Group and then followed by comments on our report released earlier this morning. After the presentation, we will, as always, open up for questions.
So Olle, with that? I hand over to you.
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Thank you, Patrick, and a warm welcome as well from my side. So we will just jump ahead, as Patrick said, into the report -- and this is us and Patrick, your host for the day. And just taking the Takin brief picture as we always do. So 27,500 business-to-business customers. So we're serving that at the moment.
We do that through the 49 business units or companies that we have. feet on the ground still in 13 countries, but all in all, we have
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